Top Economist El-Erian: Markets Are Hungover From Central Bank Support, Favors Cash Over Risky Stocks and Bonds
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Top economist Mohammed El-Erian says markets got "drunk" on central bank support, now favors cash over stocks and bonds.
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Interest rates have spiked sharply in the U.S. and U.K. recently as central banks battle inflation.
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El-Erian warns the path to lower inflation will be "painful" and keeping rates high will be necessary.
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Higher interest rates are bad for Wall Street but offer a silver lining for savers able to earn good returns.
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El-Erian is keeping his money in cash for now as he finds stocks too risky, but will revisit equities when more comfortable.